As Japan Dumps Treasuries, It's Piling Into Riskier U.S. Assets
- Holdings of stocks, company and agency debt exceed $1 trillion
- High FX hedging costs dim appeal of government-bond yields
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It’s easy to see why Japan has soured on Uncle Sam.
After all, returns on Treasuries have been lousy for years. And the sky-high costs to hedge the dollar’s ups and downs mean Japanese investors can often do better at home -- despite the minuscule yields there.